For example, it may indicate if the item is produced in another plant and transferred to the plant you are looking at.Ī cost estimate normally follows the MRP special procurement type when determining costs. The Special procurement field immediately below the Procurement type field shown in Figure 1 in the Procurement section of the MRP 2 view more closely defines the procurement type. You can make the cost estimate treat the material as though it’s externally procured with an entry in the special procurement type field, as discussed below. A cost estimate will be based on a BOM and routing if they are available that is, the procurement type will behave as an in-house production. This means a planned (proposed) order generated by MRP can be converted into either a production order or purchase requisition. This means the cost estimate will search for purchasing information usually from a purchasing info record containing vendor quotations for the material. A routing is a list of tasks containing standard activity times required to build an assembly. A BOM is a structured hierarchy of components to build an assembly. ![]() This means the cost estimate will search for Production information such as a bill of material (BOM) and a routing. A list of possible procurement types is displayed as shown in Figure 1. To display a list of possible entries for Procurement type, right-click in the field, and select Possible Entries. Navigate to the MRP 2 tab to display the screen shown in Figure 1.įigure 1: Procurement Type Field in MRP 2 View ![]() The Procurement type is located in the MRP 2 view, which you access with Transaction MM02 or via menu path: Let’s see how to display procurement types and then look at how cost estimates use this information. A cost estimate needs data on how the material is procured as the first step in determining material cost. ![]() ![]() SAP cost estimates determine how the procurement type sources the material. Material requirements planning (MRP) guarantees material availability by monitoring stocks and requirements and by generating planned orders for procurement and production. SAP Cost Estimates and MRP Procurement Type by John Jordan
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